Good Neighbor Next Door Program in NC

The Good Neighbor Next Door Program is a great FHA program available to Teachers, Firefighters,Police Officers and Emergency Technicians in NC that will allow you to purchase a home at 50% off list price!

These FHA loans are available on FHA Foreclosed Homes that HUD owns in NC. For folks who have already been identified as interested in the program, you can bid on these homes before they actually go on the market to the “public!”

The trick for many people is figuring out how to find a house that qualifies for Good Neighbor Next Door Program in NC (these are also sometimes called Teacher Loans).

Here are some of the common questions we field about How To Find a House that Qualifies for Good Neighbor Next Door Program in NC:

Which homes can I bid on? How does this part of the process work?

HUD makes the properties available via The HUD Store each day. Generally speaking, in NC new homes come on the market during the end of the month, although they can post on any day… The homes are available for bidding to participants in the Good Neighbor Next Door program before becoming available to the general public, investors, or other owner occupants. In the event multiple bids are placed on a single property, HUD will randomly select a winning offer by lottery.

Does the buyer have to be a first time home owner?

No. However, neither you or your spouse, may not own, nor have owned, for one year and one day any other residential real property prior to submitting your offer to purchase. You might also qualify to purchase the home using the NCHFA First Time Home Buyer Program in NC which could cover up to 3% in closing costs.

How long do I have to live in the home? How long do I have to maintain my current employment?

The owner occupancy period is thirty-six (36) months. Because of this commitment requirement, HUD requires that you sign a Second Mortgage for the other 50% that they are “gifting you” in the event you DON’T live in the house for three full years. This is Interest Free, and you will need to re-certify that you are still using this residence as your sole owner occupied property.

At the end of the required three-year occupancy period, HUD’s second mortgage will be released provided (1) the participant has completed and returned the required annual certifications, (2) is not currently under investigation by the Office of Inspector General, and (3) is in compliance with all Good Neighbor Next Door regulations.

As you sign all of the other closing documents for this loan, there will be one more about your Employment. “You must also certify a good faith intention to continue employment as a teacher, law enforcement officer, firefighter or emergency medical technician for at least one year following the date of closing.”

In addition to the Good Neighbor Program, you might also be interested in the $100 Down program that is available to the “general” public in NC. While it doesn’t have the benefit of 50% off the Sales Price – it only requires a $100 down payment, and that needs to be written into the initial offer to purchase the home. For the FHA $100 down program, you must be willing to live in the property for a year. You CAN combine this program with a FHA 203K, but you MUST write it in the Contract with HUD.

About Eleanor Thorne

I see myself differently than most loan officers in the Cary/Raleigh market. As a rare Cary native, I see myself as an expert on the area, on mortgage industry changes & factors that effect rates! I’ve lived in Cary since 1968 – and I’m second generation “mortgage.” I work with my husband, Steve Thorne Mortgage Loan Originator #60596 Equal Housing Lender